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HB660 INTRODUCED
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HB660
6Y97C13-1
By Representatives Gray, Forte, Lands, Warren, Chestnut,
Jackson
RFD: Ways and Means General Fund
First Read: 31-Mar-26
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QN6YI15-1 03/18/2026 MRF (F)MRF 2026-1029
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First Read: 31-Mar-26
SYNOPSIS:
This bill would establish the Beginning Farmer
and Succession Continuity Act to establish financial
incentives, support, and credit assistance to
facilitate the transfer of farmland to resident
beginning farmers.
This bill would provide succession planning
services, tax credits for sale or long-term lease to
qualified beginning farmers, and state-backed loan
guarantees.
This bill would require the Department of
Agriculture and Industries to provide a report to the
Governor and Legislature detailing program results.
This bill would establish the Beginning Farmer
Assistance Fund in the State Treasury to be used by the
department to administer the program.
A BILL
TO BE ENTITLED
AN ACT
Relating to commerce; to establish the Beginning Farmer
and Succession Continuity Act; to provide definitions; to
establish a refundable income tax credit to an owner for the
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establish a refundable income tax credit to an owner for the
sale or long-term lease of agricultural land to a qualified
beginning farmer; to require the Department of Agriculture and
Industries to guarantee loans for beginning farmers; to
establish the Beginning Farmer Assistance Fund in the State
Treasury; to create an online registry for the transfer of
agricultural land; to allow program participants to be
audited; and to establish penalties for noncompliance with
program requirements.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. This act shall be known and may be cited as
the Beginning Farmer and Succession Continuity Act.
Section 2. It is the intent of the Legislature to
support the transfer of farmland to beginning farmers to
preserve generational farming.
Section 3. For the purposes of this act, the following
terms have the following meanings:
(1) BEGINNING FARMER. An individual with less than 10
years of farming experience and an estimated net worth below
one million dollars ($1,000,000), excluding the primary
residence of the individual who will materially participate in
farm management.
(2) DEPARTMENT. Alabama Department of Agriculture and
Industries.
Section 4. (a) A refundable income tax credit may be
claimed by a taxpayer who is an owner that sells or provides a
long-term lease of agricultural land to a beginning farmer,
provided that the land must remain in agricultural use for
five years after the land transfer.
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five years after the land transfer.
(b) A taxpayer may claim a credit in an amount equal to
10 percent of the amount of the sale price or annual lease
price of the land, not to exceed two hundred thousand dollars
($200,000).
(c) The income tax credit authorized by this act is
limited to an aggregate amount for all taxpayers of two
million dollars ($2,000,000) annually.
(d) The income tax credit is nontransferable and may be
carried forward for up to five years.
(e) A taxpayer shall not claim this income tax credit
for more than three tax years.
(f) The income tax credit allowed under this section
may be claimed beginning with the 2027 tax year and may not be
claimed for tax years after the 2031 tax year, except for tax
credits carried forward as provided in subsection (d).
(g) The Alabama Department of Revenue may adopt rules
for the implementation and administration of this section.
Section 5. (a) The Beginning Farmer Assistance Fund is
established in the State Treasury from which the department
shall administer the program. The fund shall consist of any
monies appropriated by the Legislature and any voluntary
contributions, gifts, and grants.
(b) Monies deposited into the fund shall be disbursed
only upon warrants of the Comptroller drawn upon the State
Treasury on itemized vouchers approved by the commissioner. No
monies shall be withdrawn or expended except as budgeted and
allocated according to Article 4 of Chapter 4 and Chapter 19
of Title 41, Code of Alabama 1975, and only in amounts as
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of Title 41, Code of Alabama 1975, and only in amounts as
stipulated in the general appropriations act, other
appropriations acts, or this section. At the end of each
fiscal year, any unencumbered balance shall not revert to the
State General Fund under Section 41-4-93, Code of Alabama
1975.
Section 6. (a) The department may guarantee up to 75
percent of the principal of loans for qualifying beginning
farmers to purchase or enter into a lease on agricultural land
in the state from any funds appropriated to the fund or
otherwise made available for such purpose. The loan guarantee
shall not create a new debt against the state.
(b) The department shall establish rules for
application procedures, documentation requirements, and
qualifying loans.
(c) The department may contract with extension services
and nonprofits to provide estate and transition planning
assistance to beginning farmers.
Section 7. The department shall maintain a voluntary
online registry to match retiring farmers with beginning
farmers.
Section 8. The department shall deliver an annual
report to the Governor, the President Pro Tempore of the
Senate, the Senate Minority Leader, the Speaker of the House
of Representatives, and the House Minority Leader detailing
the following:
(1) The amount of acres transitioned to beginning
farmers.
(2) The amount of credits claimed by beginning farmers.
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(2) The amount of credits claimed by beginning farmers.
(3) Guarantees and default rates on loans issued to
beginning farmers.
Section 9. (a) The department, the Alabama Department
of Revenue, the State Auditor, and the Attorney General may
audit any recipients of tax credits, loan guarantees, or other
support under this act.
(b) Participants claiming tax credits or receiving loan
guarantees shall retain required documents proving eligibility
for participation in any programs under this act for not less
than seven years following the final year in which the
participant receives any benefits under this act.
(c) The Alabama Department of Revenue shall verify the
following:
(1) That transferred land remains in agricultural use
for the required period of time.
(2) That holding requirements are satisfied.
(3) That beginning farmers maintain compliance with all
eligibility requirements during the required period.
(d) If agricultural land subject to a tax credit is
sold, converted to nonagricultural use, or transferred to a
nonqualified purchaser within five years of being sold or
transferred to a beginning farmer:
(1) The full tax credit amount shall be repaid to the
state by the beginning farmer;
(2) Interest shall accrue from the date the original
credit was issued; and
(3) The Alabama Department of Revenue may assess
additional penalties on the beginning farmer.
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additional penalties on the beginning farmer.
(e) The department shall monitor guaranteed loans and
may require annual certification of continued eligibility.
Section 10. This act shall become effective
immediately.
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